Brussels: Europe and the Arabs  
The European Commission in Brussels welcomed the official decision taken by the General Affairs Council at the ministerial level of member states regarding the proposal of the Commission and the foreign policy official to use the proceeds of frozen Russian assets for the benefit of Ukraine.  
Valdis Dombrovskis, Executive Vice President, said: “I welcome the official decision taken Tuesday in the Council that will allow extraordinary revenues from the assets of the Russian Central Bank, which were frozen under sanctions in the wake of Russia’s war of aggression against Ukraine, to be used for the benefit of Ukraine.” 
The EU has chosen a legally sound, flexible path so that support can adapt to Ukraine's most urgent needs, and the Commission will continue to make every effort to achieve this allowing the first payment to be made already in July.
“The decision represents an important step forward in our unwavering support for Ukraine,” said Vice President for Values and Transparency Vera Jourova. “This initiative not only helps Ukraine in its recovery, but also underscores our commitment to upholding international law and justice.” 
In 2024, proceeds from the frozen assets will primarily support Ukraine's military activities to defend itself and strengthen its military capabilities, to meet the country's most pressing needs. 
According to a statement issued by the Commission, the decisions will enter into force after they are published in the Official Gazette.
Resources will be available to support Ukraine starting in July 2024, with semi-annual payments.
Although the Ukraine Facility Fund provides opportunities to support emergency rehabilitation, recovery and reconstruction, Ukraine's most pressing defense needs can be met through the European Peace Facility and, once approved, the European Defense Industry Programme. 
   In 2024, 90% will be allocated to the supply of military equipment through aid measures financed under the European Emergency Program and 10% to the EU budget. From the EU budget share for 2024, the full allocation will be allocated to the Ukraine facility.
Resolutions allow for prioritization of needs that are likely to change over time. The distribution will be reviewed annually with the first review by January 1, 2025.
After Russia launched its illegal invasion of Ukraine, the international community banned any transaction related to the assets and reserves of the Russian Central Bank. As a result, 260 billion euros of the assets of the Russian Central Bank around the world are “frozen” and more than two-thirds of them are in the European Union (about 210 billion euros).    Depending on interest rates, revenues generated from these frozen assets are likely to generate around 2.5 to 3 billion euros annually for Ukraine.  
On 12 February 2024, the EU clarified the rules on how to manage frozen assets and reserves (“Step 0”) and decided that central securities depositories (CSDs) would hold reserves and assets of the Russian Central Bank worth more than €1. These revenues must be separated (“Step 1”). Since February 15, 2024, the Clearing and Depository Department may not dispose of the relevant net profits or distribute them to shareholders. These revenues do not belong to Russia, and are only generated due to the decision to freeze these assets. It is subject to national taxes.